The 11 countries with the highest inflation rates in the world are battling one of the most pestering problems of the modern world economy. Due to its very dynamic nature, today’s economy is able to change dramatically over the course of a couple of days, which can affect many countries that seemingly have no relation. Unlike the 10 fastest growing economies in the world, these countries are taking a turn and going downhill from where they were for one reason or another.
For the unenlightened, inflation is the gradual rise in general living prices for a country while the income stays the same. This includes power prices, water and electricity prices and general goods. While seemingly only the population would suffer from such an event, you should keep in mind that in an economy, every little part along the chain is related and affects the next. So once the population is hit with higher living costs, they will demand higher payments which effectively makes the businesses there less profitable and turns away foreign investors or outsourcing opportunities. Just like that, the reverse course of cause and effect can be observed, where a country loses a part of it business and investments and prices rise as a result.
Inflation is one of the most common economical problems and one of the main targets for every financial sector of any government to battle. However, fully eradicating it is impossible but also would be bad for an economy. This is because inflation also has positive effects, mainly manifested in unemployment reduction, healthy interest rates and many others. With this in mind, you should know that no inflation is way worse than a healthy percent of inflation. Let’s take a look at the 11 countries which fail to keep theirs in check.
11. Bhutan
Inflation: 11.35 percent
Bhutan’s general slow development and retreating business opportunities have lead to a slow but steady increase in living costs for a population which is already below the poverty threshold.
10. Liberia
Inflation: 11.43 percent
Liberia found itself in the heart of a raging Ebola epidemic which promptly either killed or forced the country’s working force into reclusion or abandoning it completely.
9. Ukraine
Inflation: 11.45 percent
Ukraine is another country which was hit by a series of unfortunate events just recently, which heavily damaged its, already fragile, economy. Ukraine now struggles to rebuild.
8. Eritrea
Inflation: 12.26 percent
Eritrea was not doing bad at all for the past decade. However, the country’s currency took a big hit. Events like this are not at all uncommon for the developing African countries.
7. Mongolia
Inflation: 14.1 percent
For the past few years, Mongolia has been receiving a heap of foreign investments, which combined with its coal export to China, was keeping the economy alive. However, both these declined dramatically in the past year.
6. Ghana
Inflation: 15.73 percent
Ghana has been receiving little attention from tourists recently. This, combined with a pike in the living costs in the country, severely crippled Ghana’s currency.
5. Belarus
Inflation: 18.58 percent
As one of the remaining users of the Russian rouble, Belarus takes the fifth spot among the 11 countries with the highest inflation rates in the world. It is struggling to dig its way out of impending hyperinflation, after the currency plummeted following EU sanctions.
4. Malawi:
Inflation: 19.57 percent
Malawi was recently hit with inflation after a dramatic drop in foreign investments, which led to a huge spike in the country’s living costs for the last year.
3. Iran
Inflation: 19.85 percent
Iran’s inflation is the direct result of the wartime damage and sanctions left by the US. This has lead to a dramatic increase in overall costs for the country’s population.
2. Sudan
Inflation: 38.02 percent
Sudan’s economy went through an episode of serious trouble when South Sudan separated from the country. This event led to Sudan’s loss of a huge part of its oil export industry.
1. Venezuela
Inflation: 64.26 percent
Venezuela’s inflation rates are a whopping sixty-four percent, topping the chart of the 11 countries with the highest inflation rates in the world. Conditions there have worsened to an extent which makes major companies leave the country without looking back.
